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Friday, March 09, 2012

Adjust IWM (2nd time today)

I buy IWM May 88 calls for the second IWM adjustment today IWM@82.1. The rally is moving up too fast for offsetting put sales to work vs. short Apr 85 calls. Each layer of sold short puts also requires another layer of committed margin cash. I was tempted to buy the Apr 87 or 88 calls, but going out to May at this point in the option cycle makes more sense in terms of time decay. This move protects me against a buying panic and moves me to net long IWM. There is chart resistance at 83 and 85. Again, the strength of this up move has surprised me and is costing me.

Long IBM IWM MCD SPY XRTedit to add also: LONG AXP

net short APC, GLD* long BRKB* short GDX* delta is near zero on these positions

About Me

I now have two blogs, a piano blog
(link1)
and a stock market blog (link2).

Piano intro: I am a whistle and Irish flute player that started playing piano keyboard in March 2012. Mostly I compose and play my original tunes on my Casio PX-150 digital piano, which I bought in January 2013. I started in 2012 with a Yamaha NP11 keyboard.

Intro for trading blog: I am an individual investor posting a public trading diary. I am not here to give advice. I post my trades and thoughts for public consideration. Mostly it helps to keep myself straight. As of 2012, my favored trades are selling naked puts and strangles.